Seller Motivation Can Influence Your Offer
You have found the house you want to purchase. How does seller motivation influence your offer?
It is rare that a seller’s motivation will dramatically affect the price of a home. However, it is often possible to save a few thousand dollars. A common “motivated seller” is someone who has already bought their next home or is relocating to a new area. They will be under the gun to sell the home quickly. If they don’t, they face the prospect of making two mortgage payments at the same time. Most sellers want to avoid such a situation. They may even be willing to give up a few thousand dollars to avoid it.
There are also family crises that can motivate a seller to make a quick deal. However, when you see a real estate ad that mentions “divorce,” “motivated seller,” “relocation,” or something to that affect, beware. Most likely, the ad is more designed to generate phone calls and leads rather than sell the home.
However, there are times when a seller is willing to sacrifice thousands of dollars. With the seller’s permission, the listing agent will post this information along with the listing in the Multiple Listing Service. They may also inform other agents during office meetings or by flyers sent to other real estate offices. Your agent should know when a seller is truly motivated and when it is just “puff” designed to elicit interest in a property.
The exception is when an agent is selling a home they have listed themselves or selling a home that was listed by another agent from their own company. In such a situation, the agent may be acting as an agent for the seller, or as a “dual agent,” representing both you and the seller. In such a situation, they cannot legally provide you with information that would give you an advantage over the seller.